Apple increases app prices in UK following fall in the pound
US tech giant Apple has increased the price of its apps in the UK app store by 25% as the value of the pound continues to fall, despite a sharp rise after Theresa May's Brexit speech on Tuesday.
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Mobile applications that were previously 79p will now sell for 99p, with Apple essentially predicting that the pound could well reach parity with the dollar in the near future.
In October last year the company made a similar move when it increased the prices of its iPhones and iPads to adjust for the falling value of the currency against its US counterpart.
The pound fell to below $1.20 against the dollar on Monday, but was boosted by over 2% on Tuesday as May outlined her government's plans for Brexit negotiations and strong inflation data was released.
Apple said app price changes are based on "several factors", one of which was foreign exchange rates.
"Price tiers on the App Store are set internationally on the basis of several factors, including currency exchange rates, business practices, taxes, and the cost of doing business," it said. "These factors vary from region to region and over time."
Jasper Lawler, senior market analyst at London Capital Group, says that such price rises could become more commonplace in the UK as we delve further into 2017.
"Data showed prices rose 1.6% y/y in December, a significant acceleration from the 1.2% y/y rise in November," said the analyst. "On a side note, Apple raising prices in the App Store by 20% could be a sign of things to come for the British consumer in 2017."